economics
posted by ratboy .
Q: The market demand and supply curves for an agricultural product are as follows:
Qd = 4500250P and Qs = 200p
where quantities are in thousands of bushels per annum and price is in dollars per bushel.
the government wishes to acheive a higher point on the supply curve than the initial equilibrium. the desired point would involve both price and quantity being 10% greater that their initial equlibrium levels. the government is considerting either a subsidary or support price.
a) if the subsidary were used, how much would the subsidery per bushel have to be ? what would be the total cost on the government arising from this subsidary?done this by getting equlibirum where p = 9.2 so subsidy is 119.2 = 1.8 and total cos to gov is 3960
regarding the answer to a, could u plesae explain to me why the equilibrium price for this calculation is not 10 and if not how did u get 9.2
many thanks
Respond to this Question
Similar Questions

microeconmics
hi guys, im stuck on this question, if anyone can help me out i would really appreciate it ! Q: The market demand and supply curves for an agricultural product are as follows: Qd = 4500250P and Qs = 200p where quantities are in thousands … 
economicsworked out, need confirmation
hey ppl i have already done he working out and need ppl to just confirm my working out etc. Q: The market demand and supply curves for an agricultural product are as follows: Qd = 4500250P and Qs = 200p where quantities are in thousands … 
Economics
The market demand and supply curves for an agricultural product are as follows: Qd = 4,500  250P; Qs = 200P where quantities are in thousands of bushels per annum and price is in dollars per bushel. The government wishes to achieve … 
Economics
Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band. The market demand schedule for the CD is: Q = 800 – 100P. Q represents quantity demanded measured in thousands of CDs and P represents the price … 
Finite Math
At a price of $ 1.94 per bushel, the supply corn in 9,800 million bushel and the demand is 9, 300 million bushel. At a price of $1.82 per bushel, the supply is 9,400 million bushels and the demand is 9, 500 million bushels. A, find … 
economics
1. Suppose that the market of laptops is given by following supply and demand curves given below: Qd = 5000 − 3p Qs = 1000 + p. Answer the following questions on excel sheet using the above demand and supply equations. i) Take … 
Economics
Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3244 – 283 P. Of this, total domestic demand was QD = 1700 – 107 P, and domestic supply was QS = 1944 + … 
economics 11
The demand and supply schedules for milk are as follows: Price Quantity Demanded Quantity Supplied 10 0 125 8 20 95 6 40 65 4 60 35 2 80 5 a. On the same graph, draw the demand and supply curves. What does the demand curve for a product … 
maths, functions
The demand in units per week for a given product as a function of its price, p, in dollars is given as D(p) = 1100 Ð 200p, the supply of the same product in units per week as a function of its price, p, in dollars is given as S(p) … 
Business Math
3.) The demand equation for a certain product is q=50040p+p^2 where p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 …